Meanwhile, the deadline for Commander to start paying back its bank covenants looms large. The integrator renegotiated its debts in the last financial year with the exception of a $20 million short-term working capital facility, which is to be paid in two installments in the financial year to June 30, 2008. The first payment is due on February 28.
The source claimed the integrator was struggling to find the $10 million to meet the February 28 deadline and could make up to one-third of its staff redundant in a last-minute bid to stay afloat.
Lacaze refused to comment on potential redundancies.
"In the first semester of managing a business, you have three leads to generate profit - revenue, the cost of goods and your overheads. We are reviewing the effectiveness of our business operations in each of these areas," she said. "I am incredibly energised in terms of the task going forward. The business is not travelling as it should - we accept and acknowledge that. When I looked at the business externally, I saw its underlying value is substantial...that value has not been unlocked effectively."
The source also claimed Commander's largest distributor, Ingram Micro, has put the company on credit hold. The local channel sales manager of a major vendor partner also expressed concerns about the integrator's future.
CDR Price at posting:
0.0¢ Sentiment: LT Sell Disclosure: Held
